THE ESSENTIALS IN 30 SECONDS

  • Reuters, citing people familiar with the matter, reports that the US Commerce Department has not approved licences for American chipmaking tools SK hynix wants to install at its Dalian, China plant.
  • SK hynix's US unit Solidigm plans about $45 billion for two NAND plants in Marcy, New York, potentially rising to about $100 billion, according to two sources.
  • Solidigm says it is exploring fab locations worldwide and has made no decision; SK hynix, Commerce and the White House did not immediately comment.

SK hynix's plans to build memory-chip plants in New York have run into a delay tied to its factory in China, according to a Reuters report republished on November 4 by The Korea Times and Korea JoongAng Daily. The report relies on unnamed people familiar with the matter, and none of the companies or agencies involved has confirmed its account.

What the report says

According to the sources, US officials have not yet approved export licences for American chipmaking equipment that SK hynix wants for its plant in Dalian, China. The South Korean company argues that higher output in Dalian would help pay for its expansion in the United States.

Two of the people said Solidigm, SK hynix's US subsidiary, plans to invest about $45 billion in two NAND flash plants in Marcy, New York, with total spending that could eventually reach about $100 billion. NAND is the non-volatile memory used for storage in data centres, including those that run AI workloads.

Solidigm executives have met Commerce Department officials close to ten times since late August, one source said. Under Secretary Jeffrey Kessler reportedly maintained that Washington does not want more US tools used to upgrade or expand Chinese capacity, although the department has not formally rejected a licence to fill unused cleanroom space in Dalian. A separate 2027 licence to keep the site running is also under discussion, and the Treasury Department would reportedly need to waive outbound investment rules for the tool purchases.

Background and open questions

SK hynix bought Intel's Dalian NAND business in a deal agreed in 2020. Last year the Commerce Department ended the blanket authorisations that let foreign chipmakers ship US tools to their Chinese fabs, replacing them with annual licences that cap quantities. In October, Reuters first reported that SK hynix had made a new US factory conditional on more equipment exports to China. SK hynix says filling the empty space would not add capacity because the cleanroom was built in 2023.

Leland Miller of the congressionally created US-China Economic and Security Review Commission told Reuters that nothing would move "without a green light from the White House." Oneida County executive Anthony Picente said he hoped for an answer within weeks, noting that a federal investment tax credit expires at year end.

Solidigm said it is exploring options for a NAND fab at locations around the world and has made no decision. SK hynix, the Commerce Department and the White House did not immediately respond to Reuters.